Some people may choose to sell a house without an estate agent so they can take advantage of not having to pay a fee.
However, estate agents are often missed if you don’t know what to do to replace one so it is vital a buyer selling a house without an estate agent is able to make up for it.
In this article, we will therefore be discussing the knowledge you need to be aware of in order to replace an estate agent and ensure the sale of a house is smooth and nothing goes wrong.
From talking about what you should do in order to sell your property step by step to the alternatives of an estate agent, all will be discussed.
Whatever you learn from this article, it is vital you also pay attention to the tax when you sell your house too as you could get into some serious legal trouble if you don’t pay attention.
What is involved in selling a house privately?
If you’re looking to sell your home independently, it’s vital to keep in mind that while it can save you some money, doing so will undoubtedly eat up a lot of your time.
But there are certainly situations where it makes sense like if you are trying to sell a home to pay for care and keep as much money as possible.
When it comes to selling a property, estate agents handle the majority of the work, including advertising, buyer consultation, and setting up viewings.
As a result, managing these activities yourself might be very intimidating but it is still important that you don’t let this affect you if you do decide to not pay an estate agent.
Selling your home without an agent is possible and may be financially beneficial with the appropriate attitude. In fact, we’ve created a helpful guide that will lead you step-by-step through the entire procedure below.
What is the value of a house?
Perhaps the biggest obstacle you have to face when selling a house without an estate agent is working out the value of the house. For instance, there is a good chance that you over-value a house when selling yourself.
This means your house could spend a lot of time on the market where the value that it is listed at is seen as far higher than what it can really sell for which is the true worth of the property.
Therefore, unless a buyer is particularly well practised in house valuation, it is recommended that they hire a surveyor who will give an accurate valuation.
If you hire a surveyor rather than an estate agent, the figure given is viewed as more accurate because estate agents tend to value a house below what it can sell for in order to get a quick sale.
This is not true of all estate agents however as some prefer to wait it out and sell the house a bit later for a higher price and then get paid based on a bigger commission.
Do you need an estate agent if you already have a buyer for a property?
It can be viewed as wonderful news when someone wants to buy your house not only because you will get paid but because you don’t hire an estate agent and pay them a commission either.
Having said this, you should work with a solicitor who has knowledge of this kind of property selling. It’s vital to remember that using a real estate agent is not necessary to buy or sell a home.
Nonetheless, it’s essential to have the appropriate legal representation and to take all the required actions, including getting an EPC, closing a deal, and signing a contract.
Is it possible to sell your house yourself?
It’s vital to keep in mind that a large portion of the work estate agents perform is properly marketing your home and schedule viewings so think about this before you take on the challenge of selling without an estate agent.
You must first determine whether you have the necessary knowledge to oversee the sales process.
Also, you’ll need to have enough time to plan the sale and be confident negotiating with prospective purchasers. You should also take into account any limited time constraints you and the buyer may have.
You should also consider whether conducting viewings alone is something you’re comfortable with and calculating it the cost of selling a house is something you’re competent in.
Things like the capital gains on a property and working out if you need a solicitor should all be considered
If you’re marketing your house on your own and don’t already have a buyer in mind, these questions will be very helpful.
Remember that you will basically be your own estate agent if you decide to sell your home without the help of a real estate agent.
If you’re not an expert, you’ll need to be conscious of prices for EPC certificates, lawyers, floor plan designers, pictures, and marketing.
Fortunately, there are many online communities, forums, and tools where successful sellers may share their thoughts.
Hence, you don’t need an estate agent to effectively sell your home if you have the correct attitude, information, and assistance.
Does not using an estate agent save you money?
Many may not know that estate agents can charge you a commission ranging from 0.75% to 3% of the final sale price of your home?
So, if your house sells for £560,000, you may have to pay your estate agent up to £16,800 which is quite a lot of money.
Furthermore, if you buy another property, you will be required to pay stamp duty, which is unavoidable and this can eat into the profit you make from selling a house.
However, there are alternatives to finding an estate agent in this way which is using online estate agents.
They charge a flat fee for selling your home, which typically ranges between £300 and £1,500.
What’s more is regardless of how much your property sells for, the flat fee remains the same. As a result, if your home sells for £800,000, you will only have to pay the flat fee.
How can you market a property if you do it yourself?
When it comes time to sell your home, advertising is an important factor to consider. Unfortunately, many of the most popular property search portals are restricted to estate agents only.
But don’t worry, there are still other options available to you such as private sale websites, which allow property owners to list their properties for sale.
Some of these websites are free to use, while others require payment.
Another possibility is to use social media. There are a number of Facebook groups dedicated to homes for sale in specific geographic areas. It might be worthwhile to look for one near you.
What should you do to sell a house yourself?
In order to sell a property yourself you really just have to work out what is offered by estate agents already to determine if it is worth the money saved from doing it yourself.
Then you’d have to find an online listing portal where you can advertise the property.
As you go about this process you may even find you get estate agents working on behalf of other buyers. So you will likely be in communication with an estate agent one way or another.
Working out what is offered by estate agents
Some people believe that using an estate agent with the right network and marketing expertise will expose your property to a larger audience of potential buyers.
They will also be knowledgeable about the local housing market, the types of properties that are currently on the market in your area, and the types of buyers who would be interested in purchasing your home.
To make this clearer it is best to use a real life example of how despite how an estate agent charges you a fee, they usually allow the property to sell for more than it is worth.
For instance, a buyer may as well use an estate agent is they end up selling their house for 5% less just to avoid paying an estate agent fee
This is because a fee is typically less than 2% of the property’s sale price, before deciding to sell without an agent. So, all in all the buyer loses 3% on what they could have made from the sale.
Using an estate agent that is based online
Selling online is getting more popular as a method of buyers finding a place to live and also sellers finding the right buyers for their property.
What stands out to sellers is the fact that there is a flat fee rather than a commission when you sell a property and as long as you have the right photos you can get a property listed very quickly
Selling a home without an estate agent step by step
As expected, selling a home without an estate agent can be difficult without the right instructions. Therefore, follow the below steps to make sure you’re not missing anything.
Prepare the house to be sold
If you intend to sell your home, there are a few things you should consider to make the process as simple as possible. One of the most common mistakes is failing to clean their home before showing it to potential buyers.
Clutter can be a turn-off because people want to see the rooms, not your personal belongings.
While kitchens and bathrooms are traditionally the rooms that sell a house, it is also recommended not to renovate unless you’re planning to do a really good job.
It is not worth the risk that it will not work out or turn out how you expect and instead, simply cleaning them up, replacing any damaged elements, and giving them a fresh coat of paint is necessary.
Market the property
If you’ve finally decided on a price for your home and are eager to attract buyers, before you invite them in, you should write a description about your home to make it sound appealing.
While you may be tempted to talk for a long time about the property, it is actually better to keep things short and sweet.
Buyers mainly look at the interior photos and floor plans anyway so it is best to make sure you cover this in the marketing to capture attention instead of writing about the property in depth.
It’s all about giving them a visual representation of what they’re getting so they can imagine themselves in it.
Doing this in the wrong way can mean it takes a long time to sell a house and may result in actually needing an estate agent to fix mistakes and find out when to pay fees.
List the property for sale
Instead of hiring an estate agent to help you set a price, why not do it yourself? Some local agents may inflate valuations to entice you to use their services so it is important to be as realistic as you can.
You can conduct your own research to determine the true value of your home but it’s critical to look at sold price history rather than just current listings when doing so.
Another thing you can do is hire a surveyor to conduct a professional report of your home and the value it provides.
Arrange viewings with potential buyers
If you work during the day and want to sell your home, having an estate agent show potential buyers around is convenient. There are, however, other options when selling yourself.
You could ask for the help of a trusted family member or friend to show potential buyers around your home while you are at work or schedule viewings for evenings or weekends when you are available.
If you decide to show your home yourself, you should think about safety. You’ll be allowing strangers into your home, so bring a friend or partner with you if possible.
This allows you to keep an eye on things and ensure everyone’s safety.
Complete on the sale of the property
Selling your home entails some financial transactions that can be intimidating, but it’s critical to keep a clear head and avoid becoming overwhelmed by negotiation.
Set a minimum acceptable price before you begin and stick to it. Even if you’re nervous or anxious to sell, don’t accept anything less.
If you must decline an offer, do so in a friendly manner. It’s critical to keep a good relationship with the buyer in case you decide to accept their offer later.
Maintaining friendly communication is also advantageous because the buyer may feel more at ease approaching you if they decide to increase their offer.
In this sense, completing the sale of a property yourself teaches you a lot of the skills necessary to become a real estate agent so you will pick up some valuable knowledge.
Hire a solicitor to go over the paperwork
You’ll need to hire a solicitor or conveyancer to handle the legal work once you’ve accepted an offer on your home.
It’s critical to do your homework and find a reputable one, just as you would with any professional service.
Request recommendations from friends and shop around to find the best conveyancer for you and make sure you check out their reviews as this is a great way to see if they have a good service.
You can also find local conveyancers near you by using the search function on the Council for Licensed Conveyancers website here.
Wrapping things up
All in all, it is clear that you have to be prepared and take on a significant amount of responsibility if you plan on selling a house without an estate agent.
Not only will you have to learn about how to market a property in the right way but you’ll also have to deal with any legal issues that crop up and be able to negotiate on the spot as offers come in.
It could be the case that after reading this article you realise that selling a house without an estate agent is not for you and instead you do want to work with one.
The amount of additional work you have to put in to have a successful sale is quite a bit so don’t be ashamed of making this decision.
Having said this, selling a house without an estate agent can also teach you a lot and be a great networking opportunity as you’d have to find a pool of buyers completely yourself.
So be patient, try and find the right knowledge and don’t be afraid to visit a landlord association to ask for help if you ever feel like you need it.
And, be sure to get the consent of everyone involved in the ownership of a property before selling, like if you owned a home as part of shared ownership or you’re selling a house with a mortgage.